Ghost Assets
Ghost assets increase expenses, reduce productivity and exist in almost every company. Here is how to identify them, remove them and prevent them recurring.
Barcodes vs RFID in Asset Tracking
Quickly understand the pro’s and con’s of using Barcode and RFID technology for asset tracking & management. Compare the costs, hardware and applications.
Lean asset management in manufacturing
Why lean asset management in manufacturing works back to front and how it cuts out the seven types of waste in the production process.
The 3 big asset management project killers and how to avoid them
How to avoid the most common mistakes that will derail your project
Sam was enthusiastic and friendly as she told me about her project to look for a new asset management system. Her company had built the current system in-house, but as they grew they realised they needed something a bit more comprehensive. It sounded like a great project, but being new to asset management software I didn’t see the warning signs.
Fast-forward 9 months and Sam sounded a lot less enthusiastic and I felt the same. Despite all the initial enthusiasm, and a lot of work, we were still no closer to deciding if the project would go ahead. Where did it all go so wrong?
Looking back, we made three simple mistakes that can derail any asset management project before it even gets going:
1) Resources
Sam’s title should have been a red flag – “Project Support”. It was not her fault, but she did not have the experience or authority to drive through a project this big. When a project does not have an internal project sponsor or ‘champion’ with the authority to agree or veto changes, they usually just get passed on to the potential supplier as an additional feature request.
The lack of a clear, well thought through and targeted project specification increases the risk of an overly complex solution that is delivered late and over budget. The worst case scenario is that the project gets bogged down through a lack of direction and multiple layers of complexity. It eventually gets shelved without ever being delivered, but still at a significant cost to the client.
CHECKLIST
✓ Plan for the project sponsor to be actively involved
✓ Ensure the sponsor has the authority to agree the scope and specifications
✓ Establish the budget early on to avoid shocks at a later date
2) Planning
George Harrison’s lyrics to ‘Any Road‘ could have been the theme for this project – “If you don’t know where you’re going, any road will take you there”. Asset management systems can cover anything from purchasing through production and sales orders, as well as depreciation, tracking and maintenance.
Typically, asset management projects will involve finance, operations and IT as a minimum, so the potential for scope creep is a big risk. Sam’s task was to find the best system, except no one really knew what that looked like.
CHECKLIST
✓ Establish a cross functional project team before you start
✓ List your must-haves and nice-to-haves for any potential supplier
✓ Agree scenarios for suppliers to show you rather than a generic demo
3) Integration
When I asked Sam which finance package her company used, she sounded a bit surprised and asked why I needed to know. It had not occurred to her that any asset she managed would need to be loaded from somewhere and its value posted back.
A recent survey by the Access Group estimates that almost half of employees in the UK waste 3 hours a day or more on inefficient systems. A lack of integration can wipe out the savings that your new system is intended to deliver.
CHECKLIST
✓ Map the asset life cycle to see how and where each stage will be recorded
✓ Check what software integration each supplier provides
✓ Record all your interfaces centrally for future upgrades or new software
For more information on getting asset management systems right, have a read of the 10 Steps Guide to Asset Management.
Simpler together? Fixed assets in a new Scotland
3 big changes an independent Scotland would make to fixed asset management
Whether you agree with the Better Together campaign or not, one thing is clear, from an accounting point of view it would certainly be simpler to stay together. Much has been made of big banks such as the Royal Bank of Scotland’s proposed move out of Scotland if there is a yes vote, but the impact for many smaller businesses will be significant as well. Overnight, businesses across the country could become multi-nationals just by virtue of having a branch in Scotland.
Victoria Stanley, Senior Consultant at FMIS, talks about 3 key issues that will need to be considered by fixed asset accountants and management teams in the event of an independent Scotland.
Multi-currency
Bank of England governor Mark Carney and leading figures in Downing Street have made it clear that a straightforward currency union is unlikely. A new Scottish currency could create the need for valuing assets in multiple currencies. For firms using simple Excel based registers or even some off the shelf products, this would be a big challenge.
Multi-company
Having business units in different countries can mean the creation of multiple companies within a group. In addition to the initial complexities of restructuring a business, the changes will need to be reflected in a company’s asset register as well. Simple fixed asset actions like moving an item from one branch to another will now require an inter-company transfer and all the assets will need allocating to one of the companies. Again this is going to get complex when working with a spreadsheet or basic asset management system.
Tax-rules
The SNP has certainly positioned itself as a left of centre party, and as the Guardian points out, a new government would need to fund the creation of new systems and structures, all of which seems to point to increasing not decreasing taxes. Different tax rules mean that assets will need to be treated differently depending on where they are.
Where to now?
At the time of writing, the outcome of the vote is too close to call and any changes may take months or years to come into full effect. The reality is, however, that an independent Scotland would mean significant changes to how businesses record their fixed assets and the nice simple spreadsheet is unlikely to be an option.
FMIS asset management software is multi-company, multi-currency and flexible enough to handle international tax reporting requirements. For more information on FMIS Fixed Assets and other products, please see our product pages or contact one of the team directly at sales@fmis.co.uk or on +44 (0) 1227 773003.
5 reasons to beware of the fixed asset spreadsheet
Learn about the risks of using spreadsheets to manage fixed assets in this insightful article from FMIS. Discover the five reasons why relying on spreadsheets can be dangerous, and find out how you can improve your asset management processes to ensure accuracy and reliability.
Barcoding in hospitals: Bristol NHS trust uses FMIS software
Barcoding in hospitals
NHS Trust required a flexible solution
The technician team in the Trust Services division within University Hospitals Bristol NHS Foundation Trust uses FMIS Barcoding and Equipment modules to keep track of everything from high-end human patient simulators through to laptops and even syringes. The department not only need to be able to track and identify a wide range of fixed assets and inventory across different departments, but also require the flexibility to loan many of them out for periods to other areas of the Trust and beyond.
“We are very unique when it comes to asset management. Three medical departments, very expensive high fidelity human patient simulators, resus manikins, training limbs, flat screen televisions, laptops and MacBooks, other IT and A/V equipment, plus a whole host of other kit right down to boxes of syringes!”
Rob Kozlowski
Technical Support Manager
Equipment and Maintenance
FMIS Equipment and Maintenance module allows a full log of any maintenance work carried out to be logged and future work planned for and scheduled ensuring that maintenance plans are adhered to. The module’s full life cycle tracking functionality combined with the simple creation and disposal of fixed assets means that the purchase, warranty, repair, maintenance, assignment or transfer of equipment is centrally logged and easily accessible to staff members within the team at any time.
Integrated barcoding
Integration of FMIS Barcoding with the Equipment and Maintenance module simplified the process of data collection and attribution significantly. FMIS arranged for the scanners and durable branded labels to be sent directly to the Trust in Bristol and worked with their IT departments to ensure that all hardware, IT security and sourcing requirements were met within budget. Even after implementation of the project, FMIS developers worked with the team to provide additional functionality to enable the handling of more complex equipment loans. The ongoing support package means that an experienced developer or consultant is available to answer queries and handle any issues.
For more information on FMIS Equipment, Maintenance and Barcoding products, please see our solutions page or contact one of the team directly at sales@fmis.co.uk or on +44 (0) 1227 773003.
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